VEB.RF, Interros and Vasta Discovery Agree to Create New Mountain Resort in Sochi

• Total investment in the project is estimated at 80 billion roubles
• VEB.RF is considering syndicated lending for the project

VEB.RF, Interros and Vasta Discovery have agreed to cooperate in carrying out the project to create Dolina Vasta, an all-season mountain resort in Sochi.

The agreement was signed by Alexander Tarabrin, Head of Property Project Management and Asset Management and member of the Board, VEB.RF; Sergey Batekhin, CEO, Interros; and Sergey Bachin, CEO, Vasta Discovery.

The agreement is aimed at developing post-Olympic Sochi and regional tourism and building the necessary infrastructure to increase the domestic and inbound tourist flow. Ultimately, this work will contribute to the socio-economic development of the Krasnodar Territory and the city of Sochi as a mountain resort.

It is intended that the Dolina Vasta project in Sochi will build the necessary tourist infrastructure for health and ski recreation in the next four years (2021–2025). A comfortable environment will be created in Sochi National Park for year-round recreational activities, with balneotherapy and ski centres. The balneotherapy centre will include a sanatorium, guest houses and spa hotels, and a hydropathic facility with mineral water pump-rooms. The skiing facilities will consist of 80 kilometres of slopes and several ski lifts with a total length of 13 kilometres.

The project initiators estimate the total investment in Dolina Vasta at 80 billion roubles. The intend to use internal funds and borrowings, and the project’s utility and transport infrastructure will be built using public funding.

The new high-class resort, such as Dolina Vasta, in the mountain cluster of Sochi will create 2,500 jobs (or, including related services, as many as 5,000), stimulate small and medium-sized enterprises, and contribute to the socio-economic and cultural development of the region. The resort will pay billions of roubles in taxes at various levels in the future. The tourist flow is estimated at 1,500,000 guests per year.

VEB.RF is considering its participation in organising and conducting due diligence for the Dolina Vasta project, providing investment and financial advice during its implementation, and arranging a syndicated loan for the project (under the Project Financing Factory programme). Interros acts as an investor to arrange financing for the project. The project is implemented by Vasta Discovery, responsible for preparing design and estimate documents, obtaining ownership, operating the project’s facilities, as well as acting as a co-investor and raising funds.

Alexander Tarabrin, Head of Property Project Management and Asset Management and member of the Board, VEB.RF:

“Domestic tourism is an industry that can make a significant contribution to post-pandemic economic recovery. Projects in this area help to make qualitative changes to the urban environment and create incentives for small and medium-sized enterprises. That is why VEB.RF views the tourism and hospitality industries as one of the most promising areas of investment.”

Sergey Batekhin, CEO, Interros:

“The successful experience of Sochi mountain resorts clearly shows the growing demand among Russians for recreational activities within the country. This became especially true during the pandemic. The new year-round resort Dolina Vasta not only will make such recreation more accessible to Russians, but also will meet the growing demand. As the project’s investor, Interros intends to use its experience of creating the Rosa Khutor resort and will ensure that Dolina Vasta construction will meet highest engineering and environmental standards.”

Sergey Bachin, CEO, Vasta Discovery:

“The Dolina Vasta spa resort will become part of the post-Olympic development of Rosa Khutor and will perfectly complement the existing infrastructure of the Sochi mountain cluster. This will substantially expand the tourism opportunities of the Krasnodar Territory as a whole as the most attractive place for recreation in this country. I’d like to emphasise the construction of the new resort will be based on the corporate Green Code, formulated in accordance with Russian and international standards. Respect for the region’s unique natural environment has always been high on our list of priorities.”